ile Edit Object Help Problem 9-07 On April 15, 2021, fire damaged the office and warehouse of Pharoah Corporation. The only accounting record saved was the general ledger, from which the balance sheet data below was prepared. The following hta and information have been gathered. 1. The fiscal year of the corporation ends on December 31. 2. An examination of the April bank statement and canceled checks revealed that checks written during the period April 1-15 totaled $12,640: $5,339 paid to accounts payable as of March 31, $3,366 for April merchandise shipments, and $4,175 paid for other expenses. Deposits during the same period amounted to $13,006, which consisted of receipts on account from customers with the exception of a $953 refund from a vendor for merchandise returned in April. 3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $14,880 for April merchandise shipments, including $2,072 for shipments in transit (f.o.b. destination) on that date. 4. Customers acknowledged indebtedness of $46,270 at April 15, 2021. It was also estimated that customers owed another $7,560 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $596 will probably be uncollectible. 5. The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. The corporation's audited financial statements disclosed this information: $42,089 PHAROAH CORPORATION MARCH 31, 2021 Cash $18,800 Accounts receivable 40,0BO Inventory, December 31, 2020 76,220 Land 35,940 Buildings 116,650 Accumulated depreciation Equipment 3,443 Accounts payable Other accrued expenses Common stock Retained earnings Sales revenue Purchases 55,550 Miscellaneous expense 26,240 $372,923 23,760 26,634 95,800 55,550 129,090 Net sales Net purchases Beginning inventory Ending inventory Year Ended December 31 2020 2019 $555,640 $354,570 273,580 217,350 52,200 67,620 76,220 52,200 $372.923 6. Inventory with a cost of $7,510 was salvaged and sold for $3,720. The balance of the inventory was a total loss. The following data and information have been gathered. Compute the amount of inventory fire loss. (Round ratios for computational purposes to 2 decimal places, e.g 78.52% and final answer to O decimal places, e.g. 28,987.) 354x1043 8:20:17 PM - Exported to: Open in image editor Inventory fire loss $
